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Hold the Phone! US Private Sector Crushes Job Growth Forecasts, The Goldilocks Economy Rocks On!

May 01, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
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  • The United States private sector observed stronger-than-expected job growth in April, further evidence that the broad US economy is continuing to expand.  
     
  • In April, the ADP Employment Change report showed the US private sector added a whopping 275,000 jobs, more than 50% higher than the 177,000 jobs economists expected to be added to the US private sector.
     
  • The 275,000 job additions to the US private sector in April is also up from the seasonally-adjusted 151,000 jobs added to the US private sector in March.
     
  • Job additions to the US private sector were aided by private businesses of all sizes:
     
  • Small businesses, as classified by businesses with less than 50 employees, added 77,000 private sector jobs in April.  
     
  • Medium businesses, as classified by businesses with between 50 and 499 employees, added 145,000 private sector jobs in April.  
     
  • Large businesses, as classified by businesses with more than 500 employees, added 53,000 private sector jobs in April.
     
  • According to Mark Zandi, Chief Economist at Moody’s Analytics, “April’s job gains overstate the economy’s strength, but they make the case that expansion continues on.”  
     
  • The US services sector has been the largest contributor of new jobs in the US private sector for the last few months now, according to the Wall Street Journal. In April, the US services sector added 223,000 private sector jobs while the US goods-producing sector added just 52,000 private sector jobs.  
     
  • Economists will now turn their sites to nonfarm job numbers from the US Bureau of Labor Statistics, set to be announced on Friday. Economists expect the US to add 190,000 nonfarm jobs in April and for the US unemployment rate to hold at 3.8%.

 

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